An Assembly
Resolution urging institutions of
higher education to offer a required course on financial literacy.

Whereas, College is the first chance for many young
adults to make significant financial decisions on their own, and the financial
decisions made during college can affect long-term financial well-being; and

Whereas,In its 2008 survey of high school
seniors, the Jumpstart Coalition for Personal Financial Literacy, a national
coalition of organizations dedicated to improving student financial literacy,
found that participants, on average, correctly answered only 48% of 31 multiple
choice questions that covered such topics as taxes, saving, investing, debt,
and insurance, which was the worst average score since 1998; and

Whereas, A 2007 survey conducted by
the Charles Schwab investment firm found that while 70% of United States
parents had taught their teenagers how to do laundry, only 34% had taught them
how to balance a checkbook, and only 29% had taught them how credit card fees
and interest work; and

Whereas, Most
undergraduate students have multiple credit cards, and students often
believe that they are managing credit well as long as they make minimum
payments; and

Whereas, A growing body of research suggests that poor
job attendance and performance may be linked to financial distress, suggesting
financial competency is an important element in future success; and

Whereas, Divergence between more complex consumer
decisions and financial illiteracy has led to a rising trend of negative consumer
behaviors, resulting in record high levels of debt and record low levels of
economic security for individuals, families, and communities throughout the
nation; and

Whereas,Financial
literacy is associated with the health and well-being of individuals, families,
communities, and markets, and effective
financial education can help individuals develop efficient household budgets,
create savings plans, manage debt, and formulate strategic investment decisions
for themselves and their families; and

Whereas, Through the delivery of a required financial
literacy course, institutions of higher education in the State can equip
individuals with the skills necessary to ensure a lifetime of financial
well-bring, be effective participants in the economy, and fulfill their role as
meaningful contributors to the health and vitality of their communities, the
State, and the nation; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey:

1. This
House encourages each institution of higher education to offer a required
course on financial literacy to its undergraduate students to ensure that
students learn sound financial skills in order to build a foundation for
lifelong financial well-being.

2. Duly authenticated
copies of this resolution, signed by the Speaker of the General Assembly and
attested by the Clerk thereof, shall be transmitted to the Commission on Higher
Education, which is urged to distribute this resolution to each institution of
higher education in the State.

STATEMENT

This Assembly resolution urges
institutions of higher education to offer a required course on financial
literacy to undergraduate students. College is the first chance for many young
adults to make significant financial decisions on their own, and the financial
decisions made during college can affect long-term financial well-being.
Through the delivery of a required financial literacy course, institutions of
higher education in the State can equip individuals with the skills necessary to
ensure a lifetime of financial well-being, be effective participants in the
economy, and fulfill their role as meaningful contributors to the health and
vitality of their communities, the State, and the nation.